Saturday, May 24, 2014

Unifor Ecoconomist Jim Stanfords Critiques PC Million Jobs Plan, Pot Meet Kettle

 Seems Unifor economist Jim Stanford has a REPORT refuting PC leader Tim Hudak's million jobs plan. Of course this is the same Jim Stanford who put out a previous report claiming a1999 federal government STUDY (table A1.1) showed spending on social programs boosted the economy more than corporate tax cuts, something repeated by a recent editorial by failed NDP candidate Linda McQuaig. What he never mentioned was that federal financial document actually says the exact opposite, that corporate tax cuts have one of the largest multipliers over the longer term on job growth and the overall economy. While that federal study showed a better multiplier over a 2-year period , that was largely based on fiscal stimulus funding due to the recession.

 Now I myself have a little trouble taking someone serious when they seem to have trouble getting simple numbers straight. For example, for example, take a look at this PRESS RELEASE from Unifor on why they support the Wynne budget, notably the key point:

" the establishment of a $2.5-million Jobs and Prosperity Fund, including the development of a strategy to support advanced manufacturing"

 Anyone else catch that? That $2.5 million Jobs and Prosperity fund? Uh, it's actually $2.5 billion Jimbo! You are only off by what? Well, almost $2.5 billion. But I digress. Getting back to Stanford's latest, shall we call it, twisting of selective points from the Conference Board of Canada's report and willingly ignoring significant numbers and facts relating to the million jobs plan. The CBoC study only deals with the impact of tax cuts proposed by Hudak and their effects on job growth. I know this because after McQuaig's regurgitating of Stanford's obvious twisting of that 2009 federal study I contacted the CBoC directly.

 Here's the thing. When Stanford mentioned that 2009 federal study and twisted it to make progressive policies he endorses work better than policies put forth by those on the right, in my opinion he did so hoping and knowing people would take him at his word and not bother to actually look at the chart he quoted. And he's done so again. I invite everyone to actually read the CONFERENCE BOARD REPORT and make your own decisions about the PC Party platform I would also invite you to keep some key points in mind:

  • Wynne's Liberals own estimates are for 523,000 new jobs over the time period of Hudak's plan.
  • The 100,000 jobs being eliminated are to be done through attrition, not firing as Stanford continues to shamelessly claim.
  • Those leaving through attrition will be receiving generous government pensions and benefits, continuing to contribute to the economy.
  • Jobs eliminated through attrition allows junior employees and their families to continue working, earning good wages and working towards their own retirement. (something I would think unions are in favor)
  • The CBoC study actually shows decreased corporate and personal income tax rates will lead to INCREASED government revenues, something Stanford will never admit.
  • Ontario has a higher average unemployment rate than the rest of Canada. Apparently under McGuinty/Wynne, the economic engine of Canada has blown a piston, as it's obvious to most economists the province is struggling from massive debt and policies driving business and jobs away.
  • If Hudak's million jobs plan is overly optimistic, at least he has a plan to get the province back on track
Perhaps Stanford can crunch the numbers on Wynne's 500,000 jobs. And do so factoring in increased electricity costs, increased taxation, increased service fees, and the impending increase of interest costs on the provincial debt given the inevitable credit downgrade should Wynne be re-elected.

 Whaddya say Jimbo?

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